BANKING AFFAIRS

Detailed explanation-1: -The Mutual Fund industry in India started in 1963 with formation of UTI in 1963 by an Act of Parliament and functioned under the Regulatory and administrative control of the Reserve Bank of India (RBI).

Detailed explanation-2: -First Phase-1964-1987 Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.

Detailed explanation-3: -The first modern mutual fund was launched in the U.S. in 1924. The oldest mutual fund still in existence is MFS’ Massachusetts Investors Trust (MITTX), also established in 1924. The exchange-traded fund, a modern variation, has taken the market by storm since the Great Recession of 2007–2009.

Detailed explanation-4: -The former Kothari Pioneer (now merged with Franklin Templeton Mutual Fund was the first private sector mutual fund company registered in July 1993. This was the first private sector mutual fund. Later in 1996, the SEBI regulations were replaced and revised with more comprehensive rules.

Detailed explanation-5: -The Narasimha Rao government allowed private sector into the mutual fund industry in its historic Union budget of 1991-92. Before this, all fund houses were sponsored by state-owned firms, with the Unit Trust of India being an overwhelming market leader.